Tables turned on Alfaro

Alfaro firm levels fraud allegations

Businessman Brian Alfaro and his firms have faced their share of allegations that they’ve engaged in fraud in the sale of investments in oil and gas wells.

Now, one of Alfaro’s companies finds itself in the unusual position of claiming it was swindled.

San Antonio-based Primera Energy LLC alleges a former accounting assistant embezzled about $92,000 from the company.

Primera Energy accused Jessica Conlen, 24, of fraud in a civil lawsuit filed Tuesday in Bexar County District Court. Conlen didn’t respond to two phone messages.

The company has contacted local and federal authorities, who are investigating, said Mitch Little, a Frisco attorney who represents Primera Energy.

“We hope to let the civil and criminal justice system run its course and would prefer not to risk jeopardizing that process by commenting further,” Little said in an email.

The lawsuit was filed more than a month after a Cypress investor claimed in a lawsuit he was defrauded by Alfaro and his companies.

Benito Hernandez alleges that investors in Alfaro’s drilling projects bought “grossly overpriced” oil and gas interests — including in the Eagle Ford Shale. Hernandez seeks more than $1 million in damages. The defendants dispute the charges.

Securities regulators in Texas, California and Illinois previously pursued actions involving Alfaro over alleged violations of securities laws. The Texas State Securities Board issued a cease-and-desist order against him. California authorities banned him from illegally selling securities in the state. And the Illinois Securities Department fined him $7,500.

The Financial Industry Regulatory Authority, the securities industry’s self-policing organization, barred Alfaro from working in the securities industry in 2012. The FINRA accused him of running a boiler-room operation and making fraudulent misrepresentations in the sale of oil and gas interests.

In the Conlen matter, Primera Energy alleges in its suit that she forged her name on checks and had deposited them in her account. Some of the checks were medical insurance premium payments made to Aetna Insurance Co. The insurer denied medical insurance coverage to some Primera Energy’s employees as a result of not getting paid, the suit adds.

The alleged fraud occurred from December through August, the suit says, and wasn’t detected until Conlen was on vacation.

Conlen was questioned upon her return on Oct. 6 and admitted forging checks and embezzling the money, the suit says. During questioning, the suit says, Alfaro demanded Conlen return the money within a week. No money was returned, the suit adds.

Conlen worked for Primera Energy for about a year. On her LinkedIn profile, she said she was responsible for accounts payable and receivables, employee benefits, commercial insurance and “other great duties at this fascinating company!”

She’s currently seeking “a new job opportunity with a growing company known for a good work environment.” She says she is “an optimistic, motivated (and an) outgoing” person who is “driven to succeed.”

The embezzlement lawsuit isn’t Conlen’s only legal headache. Last week, Conlen was accused of shoplifting miscellaneous food items valued at $123.45 from an H-E-B store in San Antonio, according to a police report. She was arrested and released from jail the following day after posting $1,000 bail, court records show. She could face up to six months in jail if convicted on the misdemeanor theft charge.